Chocolate maker Gallothai Co will set aside a budget of 150 million baht in 2019 to expand the production facility in Chachoengsao province and build a new factory in Myanmar.
Gallothai was founded locally in 1993 by Paul Graindorge of Belgium. He decided to start the business in Thailand after travelling the world and seeing a niche to bring the taste of real Belgian chocolate to Thai consumers.
Yesterday the company welcomed guests and media to visit the manufacturing plant in Chachoengsao's Well Grow Industrial Estate to celebrate its 25-year anniversary in Thailand, witnessed by Princess Lea of Belgium.
The facility represents an investment of 100 million baht to make 150 tonnes of chocolate a year. Chachoengsao is one of the three host provinces of the government's Eastern Economic Corridor scheme.
"We will spend another 100 million baht to increase the manufacturing capacity to 250 tonnes annually in 2019," said Jean-Louis Graindorge, managing director and son of Paul Graindorge.
He said Gallothai is seeing a multitude of opportunities in the Thai market because Thais consume just 120 grammes of chocolate per person per year, compared with Belgians who eat roughly eight kilogrammes a year.
"There is plenty of room to grow in the Thai market, thanks to people's lifestyle and consumption," Mr Graindorge said.
The expansion plan includes a new automation system and machinery in a bid to increase production efficiency and reduce operating costs as Gallothai aims to comply with the transition to Thailand 4.0.
Mr Graindorge expects to resolve issues related to labour shortages and the higher minimum wage in the future.
Over the past 25 years, Gallothai has become a major player in the Thai chocolate market, trading in both the business-to-business (B2B) and business-to-customer (B2C) segments.
For B2B, it supplies chocolate products to leading hotels, resorts, restaurants, cafes, airlines, bakeries and retailers.
Gallothai has two owned brands: Duc De Praslin for the premium segment and Chococity for the mass market.
It has opened Duc de Praslin chocolateries in Bangkok, Phuket, Chiang Mai and Pattaya.
At present, Gallothai imports raw materials from Latin America to make chocolate products in Thailand because the cocoa plantations locally cannot furnish adequate supply.
In addition, the remaining 50-million-baht budget will go to a factory in Myanmar after Gallothai establishes a market presence in Yangoon with the Chococity shop.
"Myanmar is such a potential market, as the consumers prefer Thai products," Mr Graindorge said. "We are witnessing new opportunities in other neighbouring countries from the Asean Economic Community as a regional single market."
As a result of rising chocolate consumption, Gallothai expects revenue to grow by 20% to 360 million baht in 2018 from 300 million last year.
B2B sales represent up to 95%, but Gallothai is upbeat on B2C sales via convenience stores, supermarkets and hypermarkets.